Session III of the U.S. - JAPAN Roundtable Series: Partners in Nuclear Energy

Session III of the U.S. Session III of the U.S. -- JAPAN Roundtable Series: JAPAN Roundtable Series: Partners in Nuclear EnergyPartners in Nuclear Energy

February 23, 2011

Kiyoshi Yamauchi

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Competitiveness Strategies for Emerging Markets/The U.S.-Japan Private Industry Model

vs. State Owned Industry Model

Executive OfficerNuclear Headquarters

1. Nuclear Energy As a Key Player

2. Overview of MHI Nuclear

3. U.S.- Japan Cooperation in Emerging Market

4. Closing

Contents

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1. Nuclear Energy As a Key Player

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Growing Needs for Clean & Affordable Energy- Concern About Climate Change Continue- Energy Security- Energy Needs in the Developing World- Proliferation Issues- No Single Winner, No Loser in Energy Portfolio

The Role of Nuclear Power- Solution to Cover Spectrum of Needs- Engineering / Technological Advances- Safe, Clean and Economical NPP Development

Nuclear Energy As a Key Player

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New Build in US and Japan

Efficient and Safe Operation

Emerging Market

U.S.- Japan Cooperation As a Key Player

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2. Overview of MHI Nuclear

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Mitsubishi Nuclear Organization

Nuclear Energy Systems HQ (Mr. Sawa)

U.S.A.：MNES（Mitsubishi Nuclear

Energy Systems, Inc.）

Nuclear Fuel Transport System Co., Ltd.

三菱電機

電気設備

とりまとめ

MFBR（MITSUBISHI

FBR SYSTEMS, INC.）

(Control/Managing of Nuclear Business)

Takasago Machinery Works

Mitsubishi Electric Corporation

Kobe Shipyard & Machinery Works

(Nuclear Island)(Turbine Island) (Electrical Equipment)

Mitsubishi Nuclear Fuel Co., Ltd.

Nuclear DevelopmentCorporation

Nuclear Plant ServiceEngineering Co., Ltd.

Nuclear PowerTraining Center, Ltd.

Takasago R&D Center

Approximately 4,500 employees on a consolidated basis (as of April 2010)

ATMEA.SAS.

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Established : 1905Established : 1905 EmployeesEmployees : 3,900: 3,900

(For Nuclear Division: 1,700)(For Nuclear Division: 1,700) Land Area Land Area

1. Main Plant : 669,1001. Main Plant : 669,100㎡㎡2. Futami Plant: 501,1002. Futami Plant: 501,100㎡㎡

Nuclear productsNuclear products・・ Steam GeneratorSteam Generator・・ Reactor Vessel etc.Reactor Vessel etc.

RV (Reactor Vessel) Steam Generator

Kobe Shipyard & Machinery Works

Kobe Engineering Center

Steam generator facility Nuclear reactor vessel / reactor internal facility (Futami)

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Established : 1962Established : 1962 EmployeesEmployees : 3, 300: 3, 300

(For Nuclear Division: 500)(For Nuclear Division: 500) Land Area Land Area

1. Main Plant : 873,8001. Main Plant : 873,800㎡㎡2. Iwanai Plant: 7,1002. Iwanai Plant: 7,100㎡㎡3. Orland Service Center: 60,000 3. Orland Service Center: 60,000 ㎡㎡

Nuclear productsNuclear products・・ Steam TurbineSteam Turbine・・ Condenser etc.Condenser etc.

Steam Turbine

Takasago Machinery Works

Education and Training Center of Technical and Human SkillNuclear turbine rotor facility

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Total EPC CapabilityMHI supports all fields with total engineering including conceptual planning, basic, & detailed design, R&D, procurement, manufacturing, construction and maintenance services for both the Nuclear Island and the Turbine Island.

Planning Designing

R & DProcurement

Manufacturing Construction MaintenanceServices

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Mitsubishi Cutting EdgeContinuous Track Record in Japan

1970s 1980s 1990s 2000s 2010s to 2030s

独自に経済性、運転保守性を向上

9u

独自に経済性、運転保守性を向上

Tomari#3

Dec.’09, Commercially On Line

’17/’18, to be commercially

on line

Stage1

7u

ImportedTechnology

Stage2Enhanced Safety & Reliability

7u

Stage3Improved Economy

24th Tsuruga#3/4 Replacing

Fleet

Planned Units

NewBuilds

Steam Generators

Main Control Boards

MajorReplacementProjects

Reactor Internals

Turbine Rotors

Reactor Vessel Heads

For 12 plants

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4

14

6

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Sendai#3

’19, to be commercially

on line

Contribution to All of the 27 Japanese PWR Plants

From First PWR Power Plant Mihama Unit1 in 1970 to the 21st Century’s Latest APWRs

New Build (or Replacement) Projects Continued Constantly even in the 80-90’s “Nuclear Stagnation” in the US and Europe

Developed Our Own Technologiesthroughout Long History to Our Core Competence

24 PWRs in operationTsuruga -3/4 APWRs under

LicensingSendai #3 APWR under

Planning

Extensive Experiences of New Builds

TOMARI P/S

TSURUGA P/S

MIHAMA P/S

IKATA P/S

OHI P/S

GENKAI P/S

Rokkasho Reprocessing

Plant

JoyoMonju

Fast (Breeder) Reactors

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U.S.A

Turbine:2units

Mexico

RV:3units,Turbine: 6units, RCP:8units, CHP:24unitsChina

RVCH:3unitsSweden

RV: 1unitFinland

SG:10units

Belgium

SG:15units

France

Turbine:2units

Taiwan

RVCH : 16units SG : 6 units Prz : 1 unit

Component Supply to Global MarketMHI exported over 85% of all nuclear components exported from Japan

BrazilRVCH:1unit

Turbine１unit

SpainTurbine Rotor2sets

SloveniaSG : Steam GeneratorRV : Reactor VesselRVCH : Reactor Vessel Closure HeadsRCP : Reactor Coolant PumpCHP：Charging PumpPrz：Pressurizer

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MHI’s Overseas Bases and Strategic Partners

Strategic partners selected taken into consideration MHI strategic needs and capabilities of partners

PROJECT BY PROJECT COLLABORATION WITH URS AND B&V AS EPC PARTNERS FOR US-APWR

B&VURS

COMEX

MHI Group Strategic partners

Harbin Group

Iberinco

Collaboration with WEIR for nuclear power pumps

Collaboration with AREVA in development of ATMEA1

Project-wise collaboration with Iberinco for EU-APWR

License supply & production collaboration with Harbin Group for nuclear turbines

AsiaAsiaEuropeEuropeNorth AmericaNorth America

(MHIE Paris)

Collaboration with COMEX for maintenance

MHI

Cooperation with 5 Japanese companies for “International Nuclear Energy Development of Japan” for NPP project in Vietnam

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US Potential Partners

Domestic newly constructed plants

US/EU-APWR

Future reactors

Mitsubishi FBR Systems established(2007)

Make Japanesetechnology adopted as a global standard.

Participation in the national project.

Globally compatible intermediate light water reactors(1,100 MWe class)

The world’s largest light water reactor(1,700 MWe class)

1. US-APWRThe US-APWR is selected forpotential nuclear plants.【Owner】 【Site】【State】Dominion North Anna #3 VirginiaLuminant Comanche Peak #3&4 Texas

2. EU-APWRConformance certification application to European Utilities Requirements (EUR) .

Domestic PWR plants

Fast Breeder Reactors (FBR)

WideWide--rangerangeofferingsofferings

Next generation Light Water Reactors

(1,780MWe)

ATMEA1

Comprehensive Lineup of Nuclear Technologies

1. A joint venture established with AREVA in 20072. Combine the world’s most advanced/proven

technologies of both companies.3. Complete basic design and

start marketing activities in 2009.

3. JAPCO Tsuruga #3 and #4 Reactors (Domestic 1,538 MWe class APWR)Under safety review, expected to start operation in 2017and 2018

1. HEPCO Tomari #3 Reactor started commercial operationon December 22, 2009 (Latest 3rd generation reactor)

The 24th newly constructed PWR plant in Japan..2. Sendai #3 preparation for establishment license application started

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49%

3,200 bil. yen

4,400 bil. yen

63%

2007-2009average

2014

2014 2007-2009Average

2014

Strategy of Global Business Operation (including Nuclear)

Overseas Orders received Overseas Orders received

Japan

Overseas

180%

Overseas procurementOverseas procurement Overseas manufacturingOverseas manufacturing

180% 200%

2007-2009Average

Overseas group companyOverseas office, representative

Europe15%

Asia24%

MidlleEast7%

OverseasOrders received

by regionFY2014

North America43%

LatinAmerica6%

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3. U.S.- Japan Cooperation in Emerging Market

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Government Lead and/or Government Owned companiesRussia (Atomstroyexport)South Korea (KEPCO + Doosan)France (EDF + AREVA)Canada (AECL)

Private CompanyUSA (GE/Hitachi, Westinghouse)Japan (Mitsubishi Heavy Industries, Hitachi/GE, Toshiba)

Nuclear Emerging Country Market

Major nuclear players

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Idea: Export Model for Nuclear Emerging Countries

Labor Supply,Locally Procured

Equipment

Nuclear Emerging Country

Nuclear Main Component

Regulation,Licensing,Standard,Finance

etc.

Governments

Nuclear Supply Chain

ProjectManagement

PartnersMHI

Export

Support

Private Company

Participation of Utilities

(need incentive for the Utilities)

Utilities

Support

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MHI Contribution: Experience and Ability Experiences in Nuclear Advanced Countries

• QA Experiences in Component Export• CMIS (Configuration Management Information System)• Project Execution Plan• WBS (Work Breakdown Structure)

• Plant Operation Training Center• Service and Maintenance Training Center

Own Facilities to support launching Nuclear Power Plant Operation

Capability to contribute in various ways• Training for nuclear engineer• Collaboration with Utilities (R&D)• As various kind of infrastructure Maker• Education of local industry 20

Harmonization of design licensing activities through international organization such as MDEP

Promoting to make world wide rules on export Nuclear Power Plant (No dumping, Sales within Peaceful use etc.)

Support to establish Nuclear Infrastructure (Nuclear related law, Nuclear Safety Authority)

Support to educate and bring in non-proliferation measures to meet IAEA rules (Safeguard etc.) on Nuclear Power Plant

Support of Nuclear Power Plant Operation Activity (together with Utilities)

Preparation of an attractive financial proposal

Expectation to US and Japanese Government

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4. Closing

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Closing MHI has Abundant experiences to supply Safe, Reliable

and Economic PWR plants and to render Excellent services with Highest reliability.

MHI has extensive capability to carry out Integrated activities, such as conceptual design, engineering, manufacturing of main components, construction, commissioning and maintenance.

MHI is ready to collaborate with U.S. and Japanese Governments, Utilities and Vendors to promote nuclear introduction in the emerging countries.

A Leading Company in the Global Nuclear Energy Field

～ Sophisticated Production CapabilitiesContribute to Low-Carbon Society ～

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